Key points
- Plan is backed by conservative alliance, centre-left SPD and Greens: DW
- Package would free up an extra three billion euros of support for Ukraine in 2025
- Germany is currently in political limbo, with Merz embroiled in talks to form a coalition
BERLIN: German parliament will vote Tuesday on a massive spending boost for defence and infrastructure proposed by chancellor-in-waiting Friedrich Merz amid concern over the United States’ commitment to Europe’s security.
DW reported that the multibillion-euro package loosens borrowing limits and allows new investments in defence, infrastructure and climate. It added that the plan is backed by the conservative alliance, centre-left SPD and Greens.
AFP reported that the plans represent a radical departure for a country traditionally reluctant to take on large amounts of debt or to spend heavily on the military.
US’ decades-old commitment
But, Merz has urged swift action as concerns grow that the United States’ decades-old commitment to European defence is faltering under President Donald Trump, according to the Western media.
In an interview with public broadcaster ARD on Sunday, Merz said the “situation has worsened in recent weeks”, citing Trump’s overtures to Russia to end the Ukraine war and his wavering commitment to NATO.
“That is why we have to act fast,” AFP cited Merz as saying. Merz’s plans envisage exempting defence spending from the country’s strict debt rules when it exceeds one per cent of GDP and setting up a 500-billion-euro fund for infrastructure investments.
As well as boosting domestic investments, the spending package — dubbed a fiscal “bazooka” by German media — would free up an extra three billion euros of support for Ukraine in 2025.
According to German media, outgoing Foreign Minister Annalena Baerbock said that the plans were a “strong signal that Germany is serious regarding its own security, about the security of Ukraine and about the security of Europe”.
Political limbo
Germany is currently in political limbo, with Merz embroiled in talks to form a coalition with the Social Democrats (SPD) of outgoing Chancellor Olaf Scholz.
The conservatives and the SPD agreed on the plans to boost the country’s under-resourced military and ailing economy as part of their initial coalition talks in early March, AFP reported.
But, instead of waiting until the new government is formed, the parties want to get the spending plans approved by the outgoing parliament, which remains in place until next week.
In the next chamber, the far-right Alternative for Germany (AfD) and the far-left Die Linke — which both oppose the plans — would have the numbers needed to block them.
Even in the outgoing parliament, the CDU/CSU and SPD are relying on the support of the Greens to help them reach the two-thirds majority required to modify the debt brake, Western media reported.
The Greens had threatened to withhold their support, but a deal was struck late last week with Merz agreeing that 100 billion euros of the infrastructure fund will be dedicated to climate-protection measures. Merz on Monday said he was “confident” the plans would be voted through on Tuesday.
